Traditionally, supply chain staff have rarely communicated with the marketing and advertising departments. However, in recent years more companies are attempting to create a more integrated supply chain. As part of this, marketing and procurement staff have begun to work together and are finding mutual benefits.
How Logistics Impact Promotions
Promotional campaigns are a key part of the marketing strategy. The main aim of promotions is to increase the number of products/services sold during a controlled period. Because an increased number of sales will be made, this means the supply chain will need to be able to deliver.
That’s where logistics come in. Logistics planning needs to be done in line with the campaign planning, to enable the company to be able to cope with the increase in demand. For the campaign to run smoothly, supply chain and marketing staff need to work closely during the planning and implantation stages. Ensuring everyone understands their role in the process and the realistic needs/requirements to make the campaign work is essential to success.
A common issue with costings when promotions are devised. The marketing team often don’t consider the logistical costs when forecasting the overall cost of the promotional campaign. These costs can severely decrease the profit made on promotions if not properly calculated, so it’s important that supply chain staff work with marketing to make sure these costs are factored at the planning stage.
Ultimately, there is a valid argument for the integration of supply chain and marketing teams. When working closely together on projects such as campaigns, they can increase the success rate and improve the overall impact on the business, both financially and from a brand reputation point of view.